Because the entire point is to make them figure out how to foreclose on the collateral. When they don't do it, you get the money back. If the do, then they'll only recover what the lien was for, not the excess. Courts will make you deposit more than the amount to collateralize. Perhaps to cover court costs in the event you lose the proceeding.
If you are interested, I’d read all the sections. A lot will seem irrelevant. But some of this might be of interest.
FYI, posting bonds can be a bad idea in some places. There are some states that consider action on a bond to be an “insurance” type of suit. And insurance suits often provide for attorney fees if you prevail in forcing the insurance to pay.
Edit: just to clarify, a bond is not what I was talking about in prior response. Cash deposit is what I was suggesting.
Because the entire point is to make them figure out how to foreclose on the collateral. When they don't do it, you get the money back. If the do, then they'll only recover what the lien was for, not the excess. Courts will make you deposit more than the amount to collateralize. Perhaps to cover court costs in the event you lose the proceeding.
I don't know anything about this stuff.
If you are ok with sharing your state, I can check for the statute on the process and link it. No biggie if not.
I unfortunately live in NY, but I don't plan on being here much longer.
https://codes.findlaw.com/ny/lien-law/lie-sect-20.html
If you are interested, I’d read all the sections. A lot will seem irrelevant. But some of this might be of interest.
FYI, posting bonds can be a bad idea in some places. There are some states that consider action on a bond to be an “insurance” type of suit. And insurance suits often provide for attorney fees if you prevail in forcing the insurance to pay.
Edit: just to clarify, a bond is not what I was talking about in prior response. Cash deposit is what I was suggesting.